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SC Macnamara

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $107,000 and needs rehab work (around $20,000 for new flooring, paint, doors and landscaping). The borrower are putting up about $20K+ plus fronting the 1st construction draw. The borrower has a 563 credit score, experience flipping properties and cash. HMB has done 2 successful deal with this borrower.

PROPOSED TERMS:

Loan Type:

Purchase

Loan Amount:

$120,000 1st Mortgage

Value of Subject Property:

$185,000

Loan to Value:

65%

Term requested:

9 Month Balloon

Exit Strategy:

Resell property

Credit Score

553

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with $20K in construction. The borrower has lower credit but good assets and experience. The borrower will be contributing about $20K+ into this deal.

The cons are:

The borrowers exit strategy of selling could take longer than expected in this market.